Petrobras to exit its stake in an exploration block off India's east coast

Petrobras to exit Indian gas block

Brazil's Petrobras wants to exit its stake in an exploration block off
India's east coast that is operated by Oil and Natural Gas Corp, an
official at the Indian state-run company said on Thursday.

O.K. Sarraf, finance director at ONGC, did not give a reason for the
request. Petrobras holds 10 per cent in the deep-sea exploration block
in the gas-rich Krishna-Godavari basin. Norway's Statoil will continue
as a partner in the block with a 15 per cent stake, he said.

"A couple of weeks ago Petrobras had informed us about their intention
to exit the block," Sarraf told reporters on the sidelines of a
conference.

"It's all about risk sharing and technology," he said, adding ONGC
would rope in a new partner for the block.

ONGC, which produces around three-fourth of India's total oil output,
plans to invest 270 billion rupees ($6 billion) in 2010/11 for
exploration and better techniques to boost output from its ageing
fields, he said. That is up from 250 billion rupees it had spent in
the past financial year that ended in March.

ONGC could raise funds this year to fund a petrochemical project by
its subsidiary Petro Additions Ltd (OPaL), he said. The company has
already tied up 80 billion rupees for the project, which was initially
Political & Business Daily, New Delhi, April 16, 2010